Money Zone: Net Worth

Your net worth is the value of what you own minus what you owe, that is, assets like your home and your retirement fund, minus your liabilities, such as your mortgage and your credit card debt. Net worth is a convenient way to keep track of how you are doing financially. Pinpointing your net worth gives you a snapshot of your financial life today, which you can use to gauge your progress over time.

How much are you worth? As a human being, your value is priceless, and has no relation whatsoever to what accountants and bankers call net worth. Net worth is merely a way of calculating where you stand financially-do you have assets to call your own, or do you they really belong to your creditors? It’s […]